Air Berlin Bankruptcy. Backgrounds and Reasons

Document from the year 2018 in the subject Business economics - Investment and Finance, grade: A, Post University, language: English, abstract: This paper tries to outline the reasons why AirBerlin went into bankruptcy. The reasons are being presented from a financial perspective, presenting the necessary financial data that resulted in the financial loss of the firm, as well as the economic perspective that led to this disaster. Furthermore, troubles in the whole airline industries of recent decades are being highlighted through out the paper.

The Air Berlin PLC & Co. Luftverkehrs KG i.I, with seat in Berlin and basis on the airport Berlin Tegel was a German airline. It was a wholly owned subsidiary of the listed Air Berlin PLC, whose largest single shareholder was the Emirati Etihad Airways. On 15 August 2017, Air Berlin requested the opening of insolvency proceedings, the self-economic operation was continued with the help of a federal guarantee until 27 of October 2017. Parts of the company, including the business at Tegel Airport and its subsidiary LGW, were sold to Lufthansa and easyJet. The last airline of Air Berlin, Belair, filed for bankruptcy in mid-August 2018. In order to work out the causes for this bankruptcy, I will also give some more insight on the history of the company.